Day: January 10, 2025

Accounting Multiple Choice Question – 10 January 2025

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Alex plc is a medium-sized group operating at four locations in the UK.

It operates an entirely centralised finance function.

Lucy the Finance Director is concerned that the function is not performing well.

In which area is centralisation of the finance function least likely to be effective in this situation?

Select ONE answer:

  1. External reporting
  2. Recording financial transactions
  3. Cash management
  4. Internal reporting

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct == > Centralisation of the finance function generally works very well for transaction recording, external reporting and cash management, but it is often found to be less useful in terms of supporting the achievement of organisational objectives when it comes to internal reporting on performance to managers.

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